BNP Paribas, an early adopter of CobaltFX’s Dynamic Credit, announced that it is further expanding its engagement with CobaltFX, part of United Fintech, to address regulatory and industry concerns, setting a new standard for accuracy and efficiency in market operations.
Following the integration of Dynamic Credit, BNP Paribas extended the solution to simplify and streamline the allocation of credit for foreign exchange transactions between banks and improve access to liquidity. Now covering more than 100 counterparty banks, BNP calculates Dynamic Credit across 12 Electronic Communications Networks (ECNs), optimizing global credit and eliminating discrepancies.
This strategic expansion underscores BNP Paribas’ commitment to innovation and efficiency in credit allocation, enhancing market access for financial institutions worldwide. Leveraging the power of CobaltFX’s Dynamic Credit and newly developed CobaltFX Analytics, BNP Paribas addresses regulatory concerns and sets a new standard for accuracy and efficiency in market operations.
Joe Nash, Head of Global Macro Digital at BNP commented,
“We believe this is an important initiative to address the concerns of regulators and industry stakeholders regarding the over-allocation and inefficiency of dealer-to-distributor credit distribution. In addition, this approach, combined with CobaltFX Analytics, allows us to correctly determine our limit for each counterparty, while improving market access with them.”
Darren Coote, CEO of CobaltFX, a member of United Fintech, expressed:
“This systemic problem has long been overlooked, but there is a group of industry leaders who understand the benefits of this unique approach. We are very grateful for the BNP’s leadership on this matter.”
About CobaltFX
CobaltFX is in the business of reshaping the world of Forex, giving control to all credit providers and complementing each other in post-trade operational risk. The shared infrastructure is designed for maximum efficiency, facilitating better market access through the mutualization of the trade lifecycle and knowledge of market interconnection.
Founded in 2015, CobaltFX is headquartered in London, UK and is part of United Fintech, an industry-neutral Digital Transformation platform where global financial institutions and leading technology providers come together to unleash their full potential and enable the future of finance.